VeriFone Systems Inc. (PAY): Today's Highlighted Laggard In Consumer Goods

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

VeriFone Systems ( PAY) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, VeriFone Systems fell 72 cents (-3.3%) to $21.04 on light volume. Throughout the day, 2.1 million shares of VeriFone Systems exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $20.90-$21.62 after having opened the day at $21.62 as compared to the previous trading day's close of $21.76. Other companies within the Consumer Goods sector that declined today were: Crumbs Bake Shop ( CRMB), down 33.7%, Fuwei Films Company ( FFHL), down 9.8%, Greif ( GEF), down 6.3%, and Callaway Golf Company ( ELY), down 6%.
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Verifone Systems, Inc. designs, markets, and services electronic payment solutions worldwide. VeriFone Systems has a market cap of $2.33 billion and is part of the consumer durables industry. The company has a P/E ratio of 29.5, above the S&P 500 P/E ratio of 17.7. Shares are down 26.7% year to date as of the close of trading on Thursday. Currently there are five analysts that rate VeriFone Systems a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates VeriFone Systems as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

On the positive front, China Shengda Packaging Group ( CPGI), up 18.9%, Entertainment Gaming Asia ( EGT), up 15.4%, Tianli Agritech ( OINK), up 10.3%, and Industrie Natuzzi ( NTZ), up 8.9%, were all gainers within the consumer goods sector with Foot Locker ( FL) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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